Clearly, the 7-day stock market rally for the S&P 500 is largely tethered to a belief that the Fed won’t be very active on September 18. That said, there is a wide range of possibilities that might prove the bets of market participants as well as my “guestimate” wrong. Add the potential for the federal government to create yet another debt ceiling debacle, and I am content to keep plenty of cash on hand. It may be difficult to be patient for sell-offs, but patience is required for long-term investing success.
Taper Lite: Markets Believe That The Fed Will Barely Rein In Its Bond Buying
Gary Gordon is president of Pacific Park Financial, Inc.